Gap Funding As Your First Private Loan

[Alex Breshears]

The landscape is changing in real estate as we speak. Markets are softening, many are predicting more rate hikes later in the year. There is less disposable income in many American households from inflation.  There is just a lot of headwind that you need to successfully navigate moving forward. A scenario I often get asked about is doing gap funding for someone in your networking to acquire their next investment property.  While gap funding can be a great way to get started in real estate and in lending, there are often risks that new lenders might not know are there. To help out, we put together an article with some high level risk information to consider when doing gap funding.  If learning how to do more private lending safetly is something you are interested in you can always pick up the book on BiggerPockets bookstore about private lending here.

But if you are specifically looking for information about gap funding, the latest article from the Lend2Live team can be found here: https://www.biggerpockets.com/...

Have you done gap funding before? Would you be comfortable moving forward with gap funding in the current economic cycle?